How to Open an Interior Design Business

Your eager self is very much pumped up on the idea, but the thing is, you have no idea where to start. Interior designers create functional, attractive interior places through the use of color, furnishings, and decor!

Good thing we are here to help get started going full-on business and make money with your awesome skills!

Art is a tricky thing to put a price on, and sometimes the price you think your work is meant for isn’t really what others value it at.

A good thing about interior design business and interior design, in general, is that their artistic vision for each project is mostly dependent on their client’s taste, style and whatever function they require the space to have. The interior designer’s role is to give that vision proper direction so that the end result is a quality space that’s cohesive and functional. Ultimately, pricing will depend on how far the client wants to go with his/her vision.

How to Open an Interior Design Business

The interior design and home improvement industry is sizzling hot. And there’s a good reason why cable TV networks like HGTV, The Learning Channel, and DIY Network have such a huge following everywhere!

Everyone wants their environment to be comfy and pleasant, and it looks like that trend is showing no signs of cooling off.

Right now is no better time than to tool up your skills and fire up your enthusiasm starting a business in this creative and fulfilling field!

Let’s get started!

Step 1: Learn How an Interior Design Business Works

The best way to learn something is by doing! And it is no different for an interior design business!

If you ever had the skill for planning spaces and organizing home furnishings and accessories, then this could be the line of business for you! The goal of interior design businesses is to improve and update the appearance of interior living or work spaces to make them more functional, appealing, organized and more fitting to the needs of the owner or occupants while keeping to a pre-specified look or theme. The business could provide services for both suburban and business-like settings.

However, there are some interior design businesses that choose to focus on particular types of design. An interior design business can choose to focus on either kitchen design, bathroom design, living room design etc. An interior design business could also make extra income by selling a variety of custom furniture and accessories.

The best option to learn more about this kind of business is to work for one! Spending some time working for a successful interior design business, allows you to learn how to run your future shop the right way. Make use of time. Ask questions. Take on as many tasks and responsibilities as you can.

Think of ways that their processes can be improved further so you can make your upcoming business better.

Everything you’re doing here is detailed market research. So the more of market research you do, the better. It all ties into understanding the nature of the business itself, and this can help you create a plan.

Step 2: Create a Plan

Why do interior design businesses fail?

The truth is, interior design businesses fail for the same reason as many other businesses do.

Your plan is your road map. Invest sufficient time, effort, thought, and research into creating your business plan so that when you start your interior design business, you don’t have to stop and think about what to do at every turn.

At this point, this is when you decide what kind of interior design business you want to be.

What kind of business entity will your company be? Would it be a sole proprietorship, partnership, or a corporation?

Step 3: Discover Earning Potential

In the interior design business, your earning potential depends on what type of services your business specifically provides.

This may be confusing at first as setting a price for design services could be affected by all kinds of things such as materials to use and how challenging a project is. Time could also affect service fees. Of course, you’d also need to consider the difference between how much an experienced designer charges for services compared to how much a less experienced one does.

In 2011, interior designers earned a middle-point wage of $47,620 a year. But according to the BLS, interior designers’ pay was higher than the once-a-yearmiddle-point for all U.S. jobs of $34,465. Designer pay varied based on experience and background. The bottom 10 percent of earners took home an average wage of $25,720 a year, while the top 10 percent averaged $86,430.

Interior designers earn more in some businesses. Used merchandise stores pay interior designers the most, with a mean once-a-year wage of $73,180 a year, according to the BLS.

LLC $300-$1000: Yes, it doesn’t cost anything to be the only owner, however, that leaves your personal financial value at stake.

Website free – $2000: You can go with a free website service, all the way to a custom site.

Business cards $50-200: Spread the word that you’re open for business. Don’t worry too much about a custom designed logo or branding in the beginning.

Lawyer $300-$500: Hire a lawyer to review your contract. Do not do any work without a lawyer-approved contract. Again, protect your clients and yourself.

Business licenses free-$100: Depending on your location, you’ll need different business licenses and resale permits. These are necessary for doing business in many areas, but usually are very reasonable.

In the first phases of your business, drawing out a list of costs will allow you to take note of the amount you would be spending.

Aside from this initial list, these are some other costs to think about:

Office Space

Equipment

Supplies & Utilities

Communications.

Accounts & Taxation

Market Research

Reference Books

Advertising & Marketing

Step 5: Decide What Kind of Services to Offer

Interior design businesses usually focus on creating and displaying special services to its clients. Thinking what these services are will make a difference on what your initial earnings would be from your new business.

While this business model has slowly been gaining popularity in recent years, there aren’t much statistical information on the number of professional organizers practicing. The upside of this business model is that it needs little to no educational requirements, few equipment/tool costs and no licensing issues making this one of the easiest home design businesses to start with.

Restoration/Preservation

This type of service has professionals in one type of home project, such as carpentry, or may act as general contractors and handle different types of projects on homes and businesses that were built before 1930.

These professionals also use their skills to preserve and save objects like furniture and accessories. This service focuses on either restoring buildings or objects to their former state or preserving them in their current condition.

Owning a franchise means that you will be responsible for its marketing, sales, accounting, customer service, and quality assurance in order for this company to succeed.

But before you start thinking of going the franchise route, you should look at your finances. Can you even afford to buy a franchise? Will you be able to borrow money? Will you be able to wait for the franchise to start turning a profit?

Step 7: Find Suppliers

As a business, it helps you make money not only from your customers but from the suppliers that you will be promoting in your product materials lists. Contact those suppliers and talk about your rates on materials and valuable supplies with them ahead of time.

To have a better idea on what supplies you need to get your interior design business running, here’s a reference for basic supplies to get you started.

But what can you advertise? Depending on the types of services your business does.

What about a design package deal complete with a table or board filled with possible furnishings, materials, and decor, plus a product source list with items and prices? Add to that a color palette and fabric guide, top it off with a floor plan showing where the furniture and lighting would go, and you have a good start for anyone looking for design and/or decoration ideas!

So to make sure you have these great employees, figure out what skills and traits you’re looking for, how many employees you need, where to find them, what your interview process would look like, how to train them, and how to properly schedule them.

Coming up with a staffing plan ahead of time will save you considerable time and effort down the road.

Step 10: Decide on a Style/Design

As an interior design business, your business space aesthetic should somehow showcase your abilities as a designer and an artist. You want your space to represent your personality and style but not scare away any clients who may not share your aesthetic for bright neons. Talk to your ideal customers and see what they like!

Look online or at other interior design offices that love for inspiration. But whatever design you decide on, make sure to consider efficient workflow for employees, as well as adequate flow pattern for customers.

Equally important, you’ll be able to project your sales more easily with proper tracking, in addition to knowing if you are on track to stick to your budget. You’ll also be able to tell if anything is missing from your store. Make an accounting plan part of your store’s security measures.

The Bottom Line

As with any business, it’s hard to get it started and even harder to keep it going!

The game is constantly changing, and keeping up with all the latest design trends will be a challenge. Your target market will always be looking for something new and refreshing because they will want a cool and unique look for their environments.

But with a little time, effort, and a sprinkling of artistic passion and you will start to see that starting up your own business will be the best choice you’ve ever made.